Group 4 Econ Quiz

An increase in aggregate demand...

In an expansionary fiscal policy, the government....

LRAS is a _______ line at ________

What are the two tools of fiscal policy?

Aggregate Demand is extremely related to what?

Ceteris paribus, what is the effect of a recessionary gap in the long run?

The economy would return to equilibrium from an inflationary gap caused by a demand shock if...

A change in which will generally NOT shift AD?

When consumers are more optimistic about the future then...

Oil's price increases twofold, rapid inflation is occurring and many are laid off.What is this?

Which theory says that the government should not interfere with the economy?

The SRAS is ____ sloping because nominal wages are _____.

Crowding out occurs when the government has a __ __ and has to ___ on the loanable funds market

The NYSE just collapsed and investors lose millions. Ceteris paribus, what happens to AD? Why?

In a budget deficit the government spends....

There's a bill in congress to increase pension. What type of stabilization policy is this?

Which economic theory states that aggregate demand is a driving force of the economy?

Aggregate demand is....

In the short run, the aggregate supply curve (SRAS) is _________ sloping

There is a _____ relationship between the aggregate PL & quantity of aggregate output supplied